Asset Protection for Physicians and Dentists
Physicians and Dentists are in particular need of Asset Protection, but not for the reason most people would immediately assume: a mal-practice lawsuit. As a general rule physicians and dentists carry adequate mal-practice insurance which will cover them from such a lawsuit.
Two fold Asset Protection
Like many in your profession, you have long-term goals of an adequate lifestyle, freedom from debts, helping your children through school, adequately providing for your retirement, and the transfer of your wealth as well as wealth stewardship. Consequently, Asset Protection fills a two-fold need:
-
to protect assets from liability from business practices and from partners in business
-
to protect assets from loss in the event of a divorce.
The loss of assets in the event of a divorce should be self-explanatory, but if not, please ask some of your divorced medical friends.
The loss of assets in business ventures is a matter which most people do not realize. For example, what happens to the business when your partner is sued and his/her Creditor or Predator collect by taking over your partner’s portion of the business? You are now in business with your old partner’s creditor or spouse!
And what about the other areas which are particular to your profession: the Stark law, Change of Ownership (CHOW), Designated Health Services, and AKS? These and many other areas require that you work with someone who is knowledgeable and experienced.
I have a Will, isn’t that enough?
In a word, NO. Estate Planning is extremely important to you, but it needs to be tied in closely with Asset Protection. Only then can you be adequately protected while you are alive and only then can your family and loved-ones be adequately protected upon your death. A comprehensive Estate and Asset Protection plan is needed to be sure your needs and desires are met.
Why Physicians and Dentists?
For the most part, you are simply too busy with taking care of your patients and with the operations of your practice to constantly be concerned with protecting your assets. And, on the little bit of time you do get away from your practice, you usually need to take all that time to relax and refresh so you can go back to face your practice the next work day.
A 2006 study has shown that some of the major reasons for a lack of planning by physicians and dentists are:
-
The subject is too difficult, so I will do nothing (42.9%)
-
Lack of time (41.8%)
-
No need to plan as my spouse is wealthy (10.2%)
-
It is too expensive to plan (5.1%)
At Cutchin Law Firm we are fully aware of the demands on your time. We are also fully aware of the complexity of Asset Protection and the need to coordinate it with your Estate Planning.
Please click here to contact us for an initial consultation at no cost to you so we may assist you.